Governor Rick Scott of Florida signed into law a measure allowing the formation of captive insurance companies in the Sunshine State. The new Florida captive law takes effect July 1.
H.B. 1101 allows the formation of single-parent captives, special-purpose captives, industrial insurance captives and captive reinsurance companies.
Captives licensed in Florida will be required to hold at least one annual board meeting in the state and appoint a registered resident agent to act on their behalf in Florida. Captives and captive reinsurance companies must pay a $1,500 application fee and a $1,000 annual renewal fee.
The new law sets minimum paid-in capital requirements of $100,000 for pure captives and $200,000 for industrial insured captives, with minimum capital for special-purpose captives determined based on the company’s business plan. Pure captives are required to have minimum surplus of $150,000 while industrial insureds incorporated as stock companies are required to have $300,000 in minimum surplus and industrial insured captives incorporated as mutual insurers are required to have at least $500,000 in surplus.
Captive reinsurance companies are required to have a minimum of the greater of $300 million or 10% of reserves in capital and surplus.